Do you have a Quality, Environmental and Health and Safety management system that saves you money and adds to your bottom line? If you answer “Yes” to this question then this article is not for you.
If you are still with me here is the way Quality, Environmental and Health and Safety management systems add to your bottom line:
Quality: A quality system reduces both direct and indirect failure costs. For example, see the article, “A study in Quality from Real Life” under our blog section. The price of quality = the cost of conformance + the cost of non-conformance. The cost of non-conformance is made up of both direct and indirect costs. The cost of non-conformance is so much bigger than the cost of conformance that the cost of conformance is not worth calculating, except perhaps once to prove this statement. Anything that reduces the cost of non-conformance improves the bottom line.
Health and Safety: Hurting people is wrong! Hurting people causes paper work. It also causes disruption of production by the Department of Labour’s investigation. A Health and Safety management system evaluates the hazard and risk inherent in .the operations and attempts to minimise them. A little thought about the cost to the failure of Health and Safety at the Enterprise factory will demonstrate the price of health and safety non-conformance.
Environmental: The laws controlling the environment are many and complex. The penalties for breaking these laws are horrendous, but pale in significance compared to the clean-up costs often involved in an environmental incident. See the article called, “Company guilty of dumping waste.” (click your tools button to rotate the page accordingly). The article only considers the cost of the fines involved. The clean-up costs are still to come.